Broker Davis has an exclusive right-to-sell listing. The seller wants to sell the property to a family member at below market value to help the relative. Davis knows the sale price is significantly below market. Under Texas law, what should Davis do?
Correct Answer
C) Process the sale but recommend the seller consult with a tax advisor about potential gift tax implications
A seller has the right to sell their property at any price they choose, including below market value to a family member. Davis should process the sale but recommend the seller consult with a tax advisor about potential gift tax implications, as this is outside the license holder's expertise.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
More Texas Agency Law Questions
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A Texas license holder provides the IABS form to a buyer at their first meeting. Two weeks later, the buyer contacts the license holder about a different property. Must the license holder provide the IABS again?
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Agent Parker provides the IABS to Buyer Harris at the first showing. Later, Harris signs a buyer representation agreement with a completely different brokerage firm. When Harris contacts Parker about another property, Parker's firm still has a listing on, must Parker provide the IABS again?
In Texas, a sales agent who is assigned by the intermediary broker to communicate with and carry out instructions of one party in a transaction is known as a(n):
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